converted all brokerage accounts from margin to cash a/c
while i now can neither short nor sell naked calls, and must match all shorted puts with usd cash in a/c to cover
the brokers must no longer loan out my shares for others to short, and must segregate all my cash and holdings apart from their own
as more folks do what i just did, the mother-of-all-short-squeeze would be full-on
mf global may have triggered TwoAPuc (the worst of all possible unintended consequences)
(i) as and when and should the judge of competence in the hsbc-vs-mf-global-trustee case rule against the ithaca man re his warehouse receipts for serial-numbered gold and silver bars ... oh boyz, what a beautiful day that would be as all reach for their warehoused metals, or
(ii) alternatively, should the judge rule in favor of the ithaca man, all folks who supposedly hold collateral in the form of ledger a/c bars and bricks may have to take hold of such collateral and store in their own warehouse ... oh girlz, what a wonderful night that would be.
either way, one bar of gold cannot and must not answer to two masters, and so
either way, somethings have changed, because the trust has been disturbed and faith shaken, and all we need to do is stir the pot :0)
given that the current global monetary crisis and debt debacle can ONLY be definitively 'resolved' through massive dilution / devaluation (along with the usual tyrannical taxing and draconian belt-tightening), such cannot happen without execution of capital controls, then that should mean ... well, let us wait and see, watch and brief
in the mean time am wondering if team usa just handed tribe iran dominion over all of persian golf, even as it is delivering gasoline at 400/galloon to effective stranded troops in the mission-accomplished mountains of afghanistan, and if so ... hmnnnn |
